Academic journal article Academy of Strategic Management Journal

MARKETING PERFORMANCE OF BATIK TULIS BASED OF ENTREPRENEURSHIP ORIENTATION IN DAERAH ISTIMEWA YOGYAKARTA SME's

Academic journal article Academy of Strategic Management Journal

MARKETING PERFORMANCE OF BATIK TULIS BASED OF ENTREPRENEURSHIP ORIENTATION IN DAERAH ISTIMEWA YOGYAKARTA SME's

Article excerpt

INTRODUCTION

Small Medium Enterprise(SME) has been trusted as supporting of economic development in a country, both in advanced country and developing country (Sulaeman, 2004). Indonesian Bank (BI) records the economic in Indonesia, one of which is supported by Small Medium Enterprise that provides contribution until 99% for Indonesia economic development, which in 2012 reaches 6.2% and the rest is 1% in form of big business. According to the context of national industry development, the attention to grow Small Medium Enterprise is at least based on 3 reasons, which is Small Medium Enterprise absorbs many labours, Small Medium Enterprise intensives in using local natural resources and makes positive impact towards the equitable of income distribution and economic development in village (Kuncoro, 2010).

Small Medium Enterprise in Indonesia today is faced on readiness faces ASEAN Economic Society (MEA), in which most of goods trading of intra ASEAN gets benefit rate 0% (zero rate). This is a chance for Small Medium Enterprise to fulfil ASEAN market needs with product excellence possessed, especially the product that has competitiveness as creative and innovative industry (Wicaksono & Nuvriasari, 2012). Small Medium Enterprise has to keep and improve standard, design and product quality in order to be appropriate with customer's provision in ASEAN (Abdurofiq, 2015). As for, SME-Industry based, which is covering business units that conduct production process which is known by the term of Small Medium Industry (SMI) is managed by Ministry of Industry. SMI is a business group with the number of labour is about 5 until 99 people and the selling turnover is between 200 million until 50 billion IDR that is owned by Indonesian (Protret Tiga Setengah Tahun Pelaksanaan Rencana Pembangunan Jangka Menengah Industri Manufaktur 2005-2009, 2008). One of the famous Small Medium Enterprise in Indonesia is Batik Tulis business in Daerah Istimewa Yogyakarta. In the 1980s, Batik is formal dress that must be worn in every state event or others formal events in Indonesia. Batik is one of cultural heritage belongs to Indonesia that has acquired the admission from UNESCO since 2nd October 2009 (Nurainun & Rasyimah, 2008). The development of Batik Tulis Small Medium Enterprise is getting decreased; it is seen from the decreasing of Batik production business which switches to other business. Business of Batik in Daerah Istimewa Yogyakarta in 1970 reached 1200 business units, while in 2014 there are 697 business units which is recorded in Department of Cooperative, Industry and Commerce (Nurainun & Rasyimah, 2008). The reduction in the number of Batik Small Medium Enterprise is not be separated from the low of marketing performance gained, for processing results of resources that is owned by Small Medium Enterprise, which is human and product. Truly, to improve company marketing performance is needed the support from human resources in entrepreneurship orientation (Cho & Jung, 2014).

Indonesia is a country that is famous with the term of multicultural. It can be seen from the diversity of arts and cultures which spreads widely in every area, included Daerah Istimewa Yogyakarta. Batik Tulis is one of arts and cultures from Daerah Istimewa Yogyakarta, but arts and cultures will not develop if business of Batik Tulis has no entrepreneurship orientation, remembering it is one of the initial capital to reach a good company performance (Lumpkin & Dess, 1996). Small Medium Enterprise of Batik Tulis has opportunity ad chance where Batik is one of Indonesian's arts and cultures, in fact of many Small Medium Enterprises of Batik Tulis cannot keep struggle the growing and the competitiveness finally. It is caused some obstacles, such as: the decreasing of young generation who is interested to sustain business of traditional Batik Tulis and they prefer Batik with using printing technology (Saraswati & Pamungkas, 2016). …

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